Research On Performance Evaluation And Improvement Of Working Capital Management Of S Company

Working capital management is a very important part of enterprise financial management,which can promote the long-term development of enterprises.People’s material life is becoming more and more abundant,the consumption level of residents is rising,a large number of enterprises are pouring into the new retail industry,and the competition in the retail industry is becoming increasingly fierce.Many retail enterprises are facing the pressure of transformation.The quality of working capital management directly affects the business performance and development momentum of the retail industry.Active and effective working capital management can promote the production and business activities of enterprises,However,many retail enterprises do not pay enough attention to working capital management and fall into the bottleneck of development.Therefore,the research on working capital management in retail industry has certain theoretical and practical significance.S company is an enterprise with good operating conditions in the retail industry,and its working capital management status is representative to a certain extent.The performance evaluation of its working capital management is conducive to analyzing the problems existing in S company’s working capital management,and can also provide some reference for other retail enterprises in working capital management.Taking S company as the research object,this paper comprehensively and deeply analyzes the working capital management of S company by using the methods of literature research,case analysis and comparative analysis.Firstly,it is determined to take the working capital management performance as the core,and analyze the current situation of S company’s working capital management from the aspects of profitability,liquidity,risk and coordination of working capital management according to the concepts of working capital,working capital management,performance evaluation and analytic hierarchy process,channel management theory and value chain management theory.Secondly,the analytic hierarchy process is used to build the working capital management performance evaluation index system,determine the weight and performance score of the working capital management index affecting s company,and evaluate and analyze each index.The evaluation results are as follows: in terms of profitability,s company is at the middle level of the industry,and the performance of return on working assets is poor;In terms of liquidity,the turnover capacity of accounts receivable and payable is good,but the inventory turnover is poor;In terms of risk,s company’s ability to resist risks is above the medium level of the industry,but there is still a gap compared with the comparison enterprises,and the talent absorption effect is good;In terms of coordination,the concentration of suppliers is average,and the customer relationship needs to be improved.According to the evaluation process and results,the problems existing in the working capital management of S company are analyzed.The main problems include poor profitability of working capital,slow inventory turnover,certain risks of working capital,and insufficient close relationship with suppliers and customers.Finally,combined with the actual situation of S company,this paper puts forward corresponding improvement countermeasures,that is,to improve the profitability of working capital,improve the liquidity of inventory,reduce the risk of working capital,maintain the relationship between suppliers and customers,enhance the self-development ability of S company,provide reference for the working capital management of other retail enterprises,and provide power for improving the competitiveness of the industry.